3 ms·
There's a fair amount of thought behind what the ideal debt ratio should be for a company, but basically the goal is to minimize the cost of capital while maxim
by ihodes 6y ago
There's a fair amount of thought behind what the ideal debt ratio should be for a company, but basically the goal is to minimize the cost of capital while maximizing market value.^[1]
[1]: https://www.investopedia.com/terms/o/optimal-capital-structure.asp https://www.investopedia.com/terms/o/optimal-capital-structu...
- pixelmonkey 6y agoThank you for this. I did not know the term "Optimal Capital Structure" but it seems like a good jumping-off point for researching the topic.